In this article, we will discuss: 10 Best EV Stocks to Invest In According to Hedge Funds.
On June 16, Reuters cited Benchmark Mineral Intelligence reporting that global battery-electric and plug-in hybrid vehicle registrations increased by 3% year on year in May to around 1.8 million. It is extending a third consecutive month of growth. According to BMI statistics manager Charles Lester, Europe drove growth with registrations rising 23% to about 415,000 units as subsidies and high gasoline costs boosted demand. The global total remained 0.9% higher year-to-date over the first five months.
China slowed down on momentum, with registrations falling 9% to over 987,000 as support was withdrawn and tax benefits expired, as per BMI. Registrations in North America fell 26% to over 123,000 following the expiry of a US tax credit scheme and projected emissions reductions, according to BMI data manager Charles Lester. He said that Chinese OEMs had expanded internationally and targeted untapped European capacity, and Canada’s market opening will have little impact on the North American growth, according to BMI data.
With that said, here are the 10 Best EV Stocks to Invest In According to Hedge Funds.
Methodology:
We used screeners to identify EV Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 31
NIO Inc. (NYSE:NIO) is among the Best EV Stocks.
On May 28, Reuters reported that NIO Inc. CEO William Li said China’s auto sector has likely moved past its “golden era,” as domestic car sales continued to weaken into May even when exports held up.
Li stated that the rebound in the world’s largest auto market has not materialized. He stressed that the company remains mainly focused on China, while its overseas shipments launched in 2021 through Norway remain “negligible.”
He commented that China is still the most productive market for pure electric vehicle investment. Capital deployed abroad would take longer to generate returns with less certainty. He said plug-in hybrids and internal combustion vehicles remain better suited for global markets, underlining a split strategy across powertrains.
Li also noted that China’s automobile ownership has reached 370 million vehicles, calling it “no longer a growth market but rather a saturated market.” NIO Inc. plans to grow spending on smart-driving computing resources fivefold this year as compared to 2025.
NIO Inc. shares jumped 10.5% in Hong Kong trading, marking its strongest daily percentage gain since March 11.
NIO Inc. operates as a holding company that designs, develops, manufactures, and sells smart electric vehicles. It offers its products under the brands NIO, ONVO, and FIREFLY.
9. EnerSys (NYSE:ENS)
Number of Hedge Fund Holders: 42
On June 12, BTIG raised its price target on EnerSys (NYSE:ENS) to $280 from $250. The firm retained a “Buy” rating on the shares. Analyst Gregory Lewis highlighted the company’s Investor Day guidance, pointing to expected 3%-5% market growth plus an extra 1%-3% from target-market initiatives. It frames energy storage demand as a multi-year growth driver with margin expansion potential.
On June 10, EnerSys introduced its EZSelect™ Lite system in Zug, Switzerland. It is a battery-room management tool designed to streamline selection and monitoring through automated diagnostics and real-time tracking.
The corporation said site tests show manual battery selection leads to “30% under-utilised” and “20% over-used” batteries. The EZSelect system reduces inefficiencies through charger level monitoring devices and visual guidance.
The company stated that a 10% reduction in daily truck changes and a 10% faster battery swap can fuel payback in under eight months, with 2–5 minutes saved per change and up to six months of extra battery life.
EnerSys provides stored energy solutions for industrial applications. It operates through Energy Systems, Motive Power, and Specialty segments.
8. Ferrari N.V. (NYSE:RACE)
Number of Hedge Fund Holders: 43
Ferrari N.V. (NYSE:RACE) is among the Best EV Stocks.
On June 12, Bloomberg reported that Ferrari N.V. shares dropped nearly 8% after the debut of its first electric vehicle, the Luce. It erased more than $4 billion in market capitalization in hours. Investors reacted alongside owners and fans, with reactions to the design described as a “gut punch” and “betrayal,” and criticized its departure from Ferrari’s traditional combustion identity.
Bloomberg reported the Luce was designed with Jony Ive’s LoveFrom. It was a shift that produced a more minimal form and intensified backlash from collectors who said it lacked the brand’s signature curves and emotional appeal. A Ferrari N.V.’s spokesperson declined to comment.
The Luce helps Ferrari meet emissions regulations and could draw new customers, but Bloomberg reported it also risks diluting the brand’s core assets and alienating its loyal ownership base. Bloomberg noted that Ferrari’s order books extend into 2027. It shows demand resilience even as sentiment around the launch turned sharply negative.
Ferrari N.V. is a holding company that designs, engineers, produces, and sells luxury sports cars. The company’s vehicles include the F12 Berlinetta, 488GTB, 488 Spider, 458 Speciale, California T, LaFerrari Hybrid, LaFerrari, and FF four-wheel drive.
7. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: 45
Rivian Automotive, Inc. (NASDAQ:RIVN) is among the Best EV Stocks.
On May 28, Reuters reported that Rivian Automotive, Inc. faced new regulatory scrutiny after the US National Highway Traffic Safety Administration opened a preliminary probe into 114,922 vehicles. The agency said its Office of Defects Investigation received two owner questionnaires reporting that a left rear toe link can separate while driving. It caused vehicles to swerve across multiple lanes, with one incident resulting in a collision with another vehicle and a roadside barrier.
Rivian Automotive, Inc. responded in an emailed statement cited by Reuters, saying its internal data shows the R1 toe link joints are “operating as intended,” disputing the basis of the questionnaires. The firm also disclosed that it is cooperating with the review.
NHTSA said the probe will examine the sensitivity of the rear toe link joint to road and service conditions and evaluate the automaker’s repair procedures. The investigation follows a January recall of nearly 20,000 previously serviced R1S and R1T vehicles with incorrectly assembled rear toe link bolts, which the firm said it will replace free of charge.
Rivian Automotive, Inc. designs, develops, and manufactures category-defining electric vehicles and accessories. It operates through Automotive, Software and Services segments.
6. BorgWarner Inc. (NYSE:BWA)
Number of Hedge Fund Holders: 50
On June 12, BofA analyst Alexander Perry raised BorgWarner Inc. (NYSE:BWA)’s price target to $78 from $65. The firm maintained a “Neutral” rating on the shares. It told investors the company has a “significant” near-term opportunity linked to AI-driven data center demand. The firm said BorgWarner’s TurboCell product could help it capitalize as automakers and suppliers expand into non-auto end markets.
On June 10, UBS upgraded BorgWarner Inc. to Buy from Neutral and lifted its price target to $95 from $61. The analyst noted that the firm is the auto supplier “best positioned” to benefit from non-auto opportunities. UBS added that it expects 23% of revenue and 30% of EBIT from non-auto segments by 2030, driving 19% annual earnings growth from 2027 to 2030.
The corporation maintained its 2026 outlook, expecting $14.0 billion to $14.3 billion in net sales while projecting adjusted EPS between $5.00 and $5.20 and operating cash flow to $1.7 billion.
BorgWarner Inc. provides technology solutions for combustion, hybrid, and electric vehicles. It operates through the Turbos and Thermal Technologies, Drivetrain and Morse Systems, PowerDrive Systems, and Battery and Charging Systems segments.
5. Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 50
Ford Motor Company (NYSE:F) is among the Best EV Stocks.
On June 15, Reuters reported that Ford Motor Company and other automakers are struggling to obtain U.S. Commerce Department authorization to continue importing its China-built Lincoln Nautilus SUV, noting new restrictions on Chinese-linked software in connected vehicles. The automaker said the model uses US developed software installed in China, triggering the licensing requirement under the rule.
Reuters reported software prohibitions take effect with 2027 models, while separate hardware restrictions begin in 2030. This sets up a broader industry challenge.
Reuters said the rules were adopted in January 2025 over national security concerns related to vehicle data collection. It has forced automakers to reassess sourcing strategies while navigating an opaque approval process.
Rhodium Group researchers in a study stated that the hardware restrictions will prove “more cumbersome” and time-intensive. General Motors has already set a 2027 deadline for suppliers to remove China-linked components from its supply chain.
Ford Motor Company manufactures, distributes, and sells vehicles. It works in the Ford Blue, Ford Model E, Ford Pro, Ford Next, Ford Credit, and Corporate Other segments.
4. NXP Semiconductors N.V. (NASDAQ:NXPI)
Number of Hedge Fund Holders: 51
On June 11, NXP Semiconductors N.V. (NASDAQ:NXPI) announced an interim dividend. NXP USA, Inc. stated its board approved $1.014 per share for Q2 2026, payable July 9 to shareholders of record June 24. The firm noted “continued and significant strength” in its capital structure and confidence in long-term growth and cash flow.
Separately, on June 9, Wells Fargo raised its price target on NXP Semiconductors N.V. to $305 from $265. The firm maintained an “Equal Weight” rating on the stock. The firm sees “physical AI” fueling gradual demand and estimates a $1.6 billion semiconductor opportunity by 2030 due to humanoid applications.
For the second quarter 2026, the company projected revenue of $3.35 billion to $3.55 billion and gross profit of $1.89 billion to $2.04 billion on a GAAP basis. This showed expected quarterly growth of 5% to 12% and year-over-year expansion of 14% to 21%.
NXP Semiconductors N.V. is a holding company that provides semiconductor solutions. It operates in China, the Netherlands, the United States, Singapore, Germany, Japan, South Korea, Malaysia, and other countries.
3. ON Semiconductor Corporation (NASDAQ:ON)
Number of Hedge Fund Holders: 58
On June 9, Wells Fargo raised its price target on ON Semiconductor Corporation (NASDAQ:ON) to $140 from $115. The analyst maintained an “Overweight” rating on the shares. It also noted the emergence of “physical AI,” pointing to humanoid robotics as a potential long-term growth driver for analog and mixed signal chipmakers. The firm estimated a $1.6 billion semiconductor opportunity by 2030 linked to that trend.
That same day, ON Semiconductor Corporation announced the launch of GaNEXUS. It is a gallium nitride power portfolio designed to improve efficiency and power density across artificial intelligence data centers, robotics, and energy infrastructure applications. The company said its GaNEXUS FETs, from 40V to 650V, are now sampling and include integrated protection features to simplify system integration and improve reliability.
The corporation stated that the platform delivers faster switching speeds, lower losses, and high thermal performance. When paired with its Treo platform, it enables more solid system-level power solutions.
ON Semiconductor Corporation works in the provision of intelligent power and sensing solutions with a primary focus on automotive and industrial markets. It operates through Power Solutions Group, Analog and Mixed-Signal Group, and Intelligent Sensing Group segments.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 77
On June 10, Reuters reported General Motors Company (NYSE:GM) is reconsidering plans to use lithium-iron phosphate batteries for future electric vehicles. Battery chief Kurt Kelty said the company may instead prioritize lithium manganese-rich chemistry. The Detroit automaker plans to begin LFP production for EVs in 2027.
Kelty told Reuters there is “a possibility where LFP does not earn its way into our portfolio,” while calling LMR the “workhorse” for future high-volume deployment. He said that the Tennessee plant will still begin producing LFP cells this month, but for energy storage systems. He said LMR offers similar US production costs with higher energy density, even though the firm has worked on the chemistry for over a decade.
Reuters reported rivals, including Tesla, Rivian, and Ford, have added LFP-based EVs to cut costs. General Motors Company continues relying on nickel-rich batteries across its EV lineup, with LMR development “on schedule,” Kelty said. Although there are known technical challenges limiting near-term mass adoption.
General Motors Company designs, manufactures, and sells trucks, crossovers, cars, and automotive parts, as well as software-enabled services and subscriptions.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 123
Tesla, Inc. (NASDAQ:TSLA) is among the Best EV Stocks.
On June 17, Reuters reported that the Dutch road authority said about Tesla, Inc.’s 40,000 Teslas in the Netherlands are now using “self-driving” software and collectively driven 24 million kilometers without serious incidents. The RDW agency monitors performance monthly. It stated the system, which is classified as driver assistance, can steer, accelerate, and brake but requires driver oversight, noting it is “at least as safe as other driver assistance systems.”
Reuters noted the RDW conducted 3,000 hours of testing before approval and is seeking broader EU authorization.
On June 10, Reuters reported Tesla, Inc. secured authorization to place its Full Self-Driving supervised driver-assistance software in Belgium. Flanders transport minister Annick De Ridder stated on X, “I just signed the approval,” after the company completed local testing. Reuters stated that the approval allows rollout nationwide. Belgium becomes the fifth EU country to permit the system after the Netherlands, Lithuania, Estonia, and Denmark.
Tesla, Inc. works in the electric automobile and energy generation and storage technologies. It operates through the Automotive and Energy Generation and Storage segments.
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